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Selling Price Formula
When you sell a product or service you wish to sell it with profit and this profit along with your cost price that is the price you buy the product gives you selling price. The selling price is the sum of the cost price of your product along with the profit the product is destined to be sold. The selling price when subtracted with the cost price gives you the profit the trader or seller is expecting. This determines the success of the business. Even if the selling price is less than the cost price then it is a loss,when your selling price is higher than the cost price it is a profit.
Formula
- Cost price + profit = selling price of the product
- Selling price = market price – discount over the product
- Selling price = 100 + profit percent/100×cost price
- Selling price =100 – loss percent/100× cost price
Solved Examples
Example 1:
If a company sells its product over 30 percent higher than the cost price with the 5 percent discount over the product. What is the profit ?
Answer: Let us assume the cost of the product as 100
Cp=100
Profit=30
Sp=cp+profit
Sp=130
Discount =discount percent/100×Sp
Discount =5/100×130=6.5
Sp=previous sp – discount
Sp=130-6.5=123.5
Profit =123.5-100=23.5
Example 2:
A TV retailer has a 50 percent increase over his selling price over cost price with 25 percent discount percent calculated his actual profit.
Answer: X or cp=100
Profit =50
Sp=cp+profit
Sp=150
Discount =discount percent/100×Sp
Discount =25/100×150=37.5
New Sp=150-37.5=112.5
112.5/100=11.25 percent profit
